-Refer to the above figure. Economic profits for this firm are

Name: -Refer to the above figure. Economic profits for this firm are
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

Quizplus · Accepted Answer

Economic profits are positive and equal to the area P1abP2 because this area represents the difference between total revenue (the area under the price line P1 and above the quantity axis up to quantity Q) and total cost (the area under the average total cost curve up to quantity Q), for the quantities being produced and sold.

-Refer to the Above Figure